HF 2224

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:00am

A bill for an act
relating to education finance; modifying the authority for school districts to issue
and sell certain general obligation bonds without voter approval; authorizing a
levy for certain other postemployment benefits; amending Minnesota Statutes
2008, sections 126C.41, subdivision 2; 475.58, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2008, section 126C.41, subdivision 2, is amended to read:

Subd. 2.

Retired employee health benefits.

new text begin (a) new text end A district may levy an amount up
to the amount the district is required by the collective bargaining agreement in effect
on March 30, 1992, to pay for health insurance or unreimbursed medical expenses for
licensed and nonlicensed employees who have terminated services in the employing
district and withdrawn from active teaching service or other active service, as applicable,
before July 1, 1998, if a sunset clause is in effect for the current collective bargaining
agreement. The total amount of the levy each year may not exceed $600,000.

new text begin (b) In addition to the levy authority granted under paragraph (a), a school district
may levy for other postemployment benefits expenses. For purposes of this subdivision
"postemployment benefits" means benefits giving rise to a liability under Statement No.
45 of the Government Accounting Standards Board. A district seeking levy authority
under this subdivision must:
new text end

new text begin (1) create or have created an actuarial liability to pay postemployment benefits to
employees or officers after their termination of service;
new text end

new text begin (2) have a sunset clause in effect for the current collective bargaining agreement
as required by paragraph (a); and
new text end

new text begin (3) apply for the authority in the form and manner required by the commissioner
of education.
new text end

new text begin If the total levy authority requested under this paragraph exceeds the amount established
in paragraph (c), the commissioner must proportionately reduce each district's maximum
levy authority under this subdivision.
new text end

new text begin (c) The maximum levy authority under paragraph (b) must not exceed the following
amounts:
new text end

new text begin (1) $24,000,000 for taxes payable in 2010;
new text end

new text begin (2) $50,000,000 for taxes payable in 2011; and
new text end

new text begin (3) for taxes payable in 2012 and later, the maximum levy authority must not exceed
the sum of the previous year's authority and $19,000,000.
new text end

Sec. 2.

Minnesota Statutes 2008, section 475.58, subdivision 1, is amended to read:

Subdivision 1.

Approval by electors; exceptions.

Obligations authorized by law or
charter may be issued by any municipality upon obtaining the approval of a majority of
the electors voting on the question of issuing the obligations, but an election shall not be
required to authorize obligations issued:

(1) to pay any unpaid judgment against the municipality;

(2) for refunding obligations;

(3) for an improvement or improvement program, which obligation is payable wholly
or partly from the proceeds of special assessments levied upon property specially benefited
by the improvement or by an improvement within the improvement program, or from tax
increments, as defined in section 469.174, subdivision 25, including obligations which are
the general obligations of the municipality, if the municipality is entitled to reimbursement
in whole or in part from the proceeds of such special assessments or tax increments and
not less than 20 percent of the cost of the improvement or the improvement program is to
be assessed against benefited property or is to be paid from the proceeds of federal grant
funds or a combination thereof, or is estimated to be received from tax increments;

(4) payable wholly from the income of revenue producing conveniences;

(5) under the provisions of a home rule charter which permits the issuance of
obligations of the municipality without election;

(6) under the provisions of a law which permits the issuance of obligations of a
municipality without an election;

(7) to fund pension or retirement fund deleted text begin or postemployment benefit deleted text end liabilities pursuant
to section 475.52, subdivision 6;

(8) under a capital improvement plan under section 373.40; deleted text begin and
deleted text end

(9) under sections 469.1813 to 469.1815 (property tax abatement authority bonds), if
the proceeds of the bonds are not used for a purpose prohibited under section 469.176,
subdivision 4g, paragraph (b) new text begin ; and
new text end

new text begin (10) postemployment benefit liabilities pursuant to section 475.52, subdivision 6, for
municipalities other than school districts new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for obligations issued and sold prior
to March 30, 2009.
new text end